UAE Introduces New Nafis Salary and Child Allowance Rules

New Nafis rules taking effect in September reshape financial support for Emiratis working in the private and banking sectors, introducing revised salary-support levels, an uncapped AED 600 child allowance and new pension responsibilities for employers. 

| Written by Palak Kataria

Image Courtesy:  Magnific

For Emiratis building their careers in the private sector, September brings a significant update to the financial and family support available through the UAE's Nafis programme.

The revised framework introduces new salary-support levels, expands the child allowance and changes how pension contributions are divided between Nafis and employers.

One of the most important changes is the standardisation of the minimum monthly salary for Nafis eligibility at AED 6,000 across eligible categories.

Under the revised salary-support framework, the maximum monthly Nafis support is set at AED 6,000 for bachelor's degree holders, AED 5,000 for diploma holders and AED 4,000 for secondary-school graduates.

For employees educated below secondary-school level, maximum support is AED 4,000 for those who are married or have dependants and AED 3,000 for unmarried employees without dependants.

The new framework applies from September 2026 for new beneficiaries, while existing recipients will transition gradually rather than seeing their current support change immediately.

For eligible existing beneficiaries receiving support above the revised levels, adjustments will take place in AED 500 increments every six months until their payments align with the new structure.

The changes are designed to continue supporting Emiratis pursuing careers outside government while evolving the programme as national participation in the private-sector workforce expands.

More Support for Working Families

Families are another major focus of the September changes.

Eligible Emiratis working in private-sector and banking establishments can now receive AED 600 per month for each eligible child, with the previous limit on the number of children removed.

The allowance is available where the beneficiary earns below AED 50,000 per month.

For male children, payments continue until they turn 21 or begin working, whichever happens first. For female children, support continues until marriage or employment, whichever comes first.

The same child cannot receive the allowance twice, while eligibility conditions also apply where a beneficiary's spouse works for a federal or local government entity.

For working parents, removing the numerical cap means the programme can provide support based on the number of eligible children within the family rather than restricting assistance to a set number.

The broader Nafis reforms also introduce additional salary-support pathways for certain wives of Emirati nationals and children of Emirati mothers working in the private and banking sectors, subject to specific salary, education and family eligibility requirements.

Employers Take Greater Responsibility for Pensions

Another important change sits directly with employers and payroll teams.

Under the updated Eshtirak pension contribution programme, private-sector employers will now be responsible for paying their legally required share of pension contributions for eligible Emirati employees.

Nafis will no longer reimburse the employer's portion. Instead, programme support will be limited to the legally prescribed contribution payable on behalf of eligible Emirati employees earning between AED 6,000 and AED 20,000 per month.

Employees must also be registered with an eligible UAE pension authority or fund and meet the programme's other conditions.

For HR and finance teams, the change makes September an important point for ensuring payroll systems and pension processes reflect the revised employer responsibility.

The updates arrive as Emirati participation in private-sector employment continues to grow.

Since Nafis was launched, it has contributed to the employment of more than 176,000 Emiratis, according to the Emirati Talent Competitiveness Council. As of the end of March, 152,000 beneficiaries were working across approximately 32,000 establishments, while women represented 74% of private-sector beneficiaries.

More than 38,000 children had also benefited from the Child Allowance Scheme.

That scale helps explain why the latest Nafis changes extend beyond salary support alone.

As more Emiratis establish long-term careers in private businesses, the programme is increasingly addressing the wider employee journey, from earnings and pensions to the financial needs that can accompany raising a family.

For employees, September therefore brings new support parameters to understand. For employers, it introduces additional responsibilities to incorporate into payroll and workforce planning.

Together, the changes reflect the next stage of a programme increasingly focused not simply on helping Emiratis enter private-sector employment, but on supporting sustainable careers within it.

Source(s): Emirati Talent Competitiveness Council (Nafis); Emirates News Agency (WAM)